strategic reserves following the deadly explosion in its largest refinery in

Al-Ahmadi.

The company procured 100,000 tons of fuel oil and 75,000 tons of petrol as a

precaution and to boost the nation's strategic reserves.

Al-Ahmadi refinery was severely damaged in the explosion. Kuwaiti Oil Minister Sheikh Saud Nasser al-Sabah remarked that the necessary repairs would cost approximately $330 million. An independent expert recommended the construction of a new refinery rather than repairing Al-Ahmadi, which uses out-dated technology.

Kuwait recently resumed crude oil exports from a terminal adjacent to

Al-Ahmadi refinery, but exports of refined products from the refinery are

not expected to recommence for several weeks.

Kuwait, which typically boasts a production capacity of over 2.4 million

barrels per day (bpd), faces increased pressure to meet the new OPEC quota

from 1.98 million to 2.037 million bpd starting on July 1.

Al-Ahmadi refinery has a capacity of 450,000 bpd, constituting half of

Kuwait's refined oil exports. According to an initial assessment, an oil

distillation unit with a capacity of 122,000 bpd was extensively damaged and

another with 120,000 bpd capacity suffered medium damage in the explosion

caused by a gas leak.

Founded in 1980 as an umbrella organization to manage the state of Kuwait's

rapidly diversifying oil interests, KPC has in less than two decades

established itself as a truly international entity, respected by governments

and business institutions worldwide as the ambassador of Kuwait's oil

industry. KPC contributed to Kuwait's recovery from the dire state faced by